§ 11-25-16. Refunding bonds -- Issuance -- Proceeds -- Investments.

(1) The agency may provide for the issuance of the bonds of the agency to:

(a) refund any outstanding bonds of the agency;

(b) pay any redemption premiums and any interest accrued or to accrue to the earliest or subsequent date of redemption, purchase, or maturity of those bonds; and

(c) pay all or any part of the cost of additional residential rehabilitation.

(2) The agency may:

(a) apply the proceeds of bonds issued for the purpose of refunding any outstanding bonds to the purchase or retirement at maturity or redemption of any outstanding bonds, either at their earliest or any subsequent redemption date or upon the purchase or retirement at their maturity; and

(b) pending that application, place them in escrow, to be applied to the purchase or retirement at maturity or redemption on the date determined by the agency.

(3)

(a) Pending use for purchase, retirement at maturity, or redemption of outstanding bonds, any proceeds held in escrow under Subsection (2) shall be invested by following the procedures and requirements of Title 51, Chapter 7, State Money Management Act.

(b) The agency shall apply any interest or other increment earned or realized on an investment to the payment of the outstanding bonds to be refunded.

(c) After the terms of the escrow have been fully satisfied and carried out, any balance of proceeds and any interest or increment earned or realized from the investment of them may be returned to the agency to be used by it for any lawful purpose.

(4) The agency shall invest that portion of the proceeds of any bonds designated for the purpose of paying all or any part of the cost of additional residential rehabilitation under Subsection (1) by following the procedures and requirements of Title 51, Chapter 7, State Money Management Act.

(5) All bonds issued under this section are subject to the provisions of this part in the same manner and to the same extent as other bonds issued under this chapter.

Amended by Chapter 285, 1992 General Session